To gamble or not to gamble? The effect of mobile money on gambling in Kenya

Mobile money (MM) enables users, especially the unbanked, to access financial services via mobile phones in developing countries. Whereas much has been studied about the socioeconomic benefits of MM in sub-Saharan Africa, little is known about whether and how MM use influences risk-taking behaviors such as gambling. This paper documents that MM use leads to the heightened probability of gambling and this probability increases with use frequency. Moreover, we find that young male MM users with a lower socioeconomic status (i.e., unemployed, low education, and low income) are more likely to engage in gambling. Our findings call for policymakers’ attention to the potential for unintended consequence of MM.